Yahoo Finance USD/JPY Weekly Price Forecast – US Dollar Continues to Punish The Yen With Another Positive Week
US Dollar vs Japanese Yen Weekly Technical Analysis
The US dollar initially pulled back just a bit against the Japanese yen, but then since has broken above the 160 yen level. The 160 yen level of course is a large round psychologically significant figure and an area that I think a lot of people are going to pay attention to it. Market memory comes into picture, and we could see buyers there, but even if we pull back from there, the market I think has plenty of support near the 158 yen level, possibly even the 155 yen level.
All things being equal, this is a market that I do think continues to go higher, but we are a little stretched, so don’t be surprised with a little bit of a give back. That give back should be thought of as a buying opportunity due to the fact that the interest rate differential will continue to be quite wide between the two central banks. Remember, Japan really can’t do anything with its monetary policy at the moment, while the Federal Reserve, looks very likely to hang out at this level.
So, with that being said, I think you’ve got a situation where you continue to buy dips. And I do think that given enough time, we continue to see the Japanese yen lose strength against most currencies, not just the green bank, but with interest rates high in the United States. I think this is strong. If you enjoyed the video, give me a thumbs up and make sure to subscribe.
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This article was originally posted on FX Empire
